Cadence Design Systems Inc (CDNS)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,395,819	1,321,229	1,287,768	1,270,482	1,281,926	1,130,389	1,082,708	1,056,929	1,045,363	1,028,892	965,315	875,935	768,435	760,570	737,588	704,989	632,748	551,984	502,979	480,902
Revenue (ttm)	US$ in thousands	4,641,260	4,353,900	4,161,490	4,077,389	4,089,979	3,921,236	3,800,700	3,681,642	3,561,718	3,434,877	3,283,218	3,153,982	2,988,244	2,975,117	2,890,829	2,800,962	2,682,891	2,522,537	2,435,533	2,377,534
Pretax margin		30.07%	30.35%	30.94%	31.16%	31.34%	28.83%	28.49%	28.71%	29.35%	29.95%	29.40%	27.77%	25.72%	25.56%	25.51%	25.17%	23.58%	21.88%	20.65%	20.23%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,395,819K ÷ $4,641,260K
= 30.07%

Cadence Design Systems Inc has demonstrated a consistently improving pretax margin over the analyzed periods from March 31, 2020, to December 31, 2024. The pretax margin started at 20.23% in March 2020 and showed a gradual increase to reach 30.07% by December 31, 2024.

The upward trend in pretax margin highlights the company's ability to efficiently manage its operating expenses relative to its total revenue, leading to higher profitability before accounting for taxes. This steady improvement in pretax margin indicates effective cost control measures and operational efficiency within the company.

Although there was a slight decrease in pretax margin from March 31, 2024, to June 30, 2024, the overall trend remains positive. It is important for Cadence Design Systems Inc to continue monitoring and managing its expenses effectively to sustain and potentially enhance its profitability in the future.